If you are in the ag retail business, you understand nitrogen markets have been on a roller coaster ride the last 7-10 days.  IFCA has heard from both members and growers regarding the recent developments with input markets.  As many of you know, Russia has decided to close the Nord Stream 1 pipeline.  What does this mean?  Over the years Russia has supplied roughly 40% of Europe’s natural gas, with an even higher percentage supplied to Germany, where inexpensive energy was a pillar of the economy.  With the pipeline’s closing, natural gas price is currently eight to nine times higher in the EU compared to that in the United States.  For context, click here to view prices of natural gas over the last 5 years.  For more background information on the Russia/EU natural gas issue, click here. 

 

With everything going on in the fertilizer markets, IFCA highly recommends that our members have all growers sign a fertilizer contract, so all parties have a clear understanding of the agreed upon price.  The Ag Retailers Association has put together a simple and easy contract for all retailers to use.  Please click here to view it.  If you have any questions, please don’t hesitate to reach out to KJ at KJ@IFCA.COM or call 217-369-1669